ANZ has agreed to sell its Share Investment Lending portfolio to Leveraged Equities, a subsidiary of Bendigo and Adelaide Bank. 

ANZ said, via a media release, that "the divestment is consistent with [its] simplification agenda and the financial impact is not material," from its side of the transaction.

Likewise, Bendigo has indicated that while the deal will be far from immaterial for its Leveraged Equities operations, the overall cost is not material for the group and can be funded "through the ordinary course of business operations". 

Accordingly, the bank will pay what it called "an immaterial premium over book value" for the ANZ margin lending portfolio. 

Bendigo said the value of the ANZ portfolio was "approximately A$715 million, with approximately 11,900 customer facilities" (as at 31 May 2022)”.

The acquisition will take the combined value of the Leveraged Equities margin lending portfolio to more than $2 billion.

The bank’s chief executive officer Baker said: "The portfolio we are acquiring is well established and primarily comprises retail customers which will complement Leveraged Equities’ client base of professionals and clients under advice. 

"We believe there is a strong future for margin lending in Australia, and this acquisition will create further opportunities for growth.”

The deal is expected to close in the first half of calendar year 2023 and will be earnings accretive upon completion, Bendigo stated. 

The sale continues a trend away from what is fast becoming a niche part of the market, with the most recent APRA and RBA statistics showing a steady decline in the number of accounts held across the sector.

In the March 2022 quarter there were 93,000 margin lending client accounts, down from 98,000 in the March 2021 quarter and 107,000 a year earlier.

It will also draw a line under a business that has at times damaged ANZ's standing – notably its links to failed margin lending businesses Opes Prime and Chimaera's Primebroker in the wake of the global financial crisis.